For the Importer
Import Documentary Collection allows you to obtain the necessary commercial and financial documents before you make payment to your supplier. Documents are sent to the importer through the exporter's bank (remitting bank) to the importer's bank (collecting bank). Upon the collecting bank's receipt of documents, the collecting bank will deliver the documents to the importer against payment for sight bills or against acceptance for usance bills. The importer will be able to take possession of the goods with the custody of the documents acquired through payment or acceptance. RHB Bank is able to take on the roles of the remitting and collecting banks in this instance.
Benefits
- Allows you to be certain the necessary commercial and financial documents are in order, and inspect the same documents before making payment or accepting the bill. You may refuse payment or acceptance if documents are not in order
- Allows you to take the goods and make payment at maturity for usance bills
- Simpler and cheaper method in handling imports compared to Letters of Credit
- Does not require credit facilities to trade
- Allows access to financing options through our comprehensive range of import financing products
- RHB Bank may guarantee payment of your accepted draft under RHB Bank's IBC Avalisation service giving added assurance to your supplier
- Governed by the International Chamber of Commerce rules
For the Exporter
Export Documentary Collection allows you to send your shipping documents through a remitting bank (exporter's bank) for onward transmission to the collecting bank (importer's bank). Your shipping documents will be delivered to the buyer upon payment of the sight bill or acceptance of the usance bill. Hence you will retain control of the goods until your buyer pays or accepts to pay at maturity of the bill. You may also require the collecting bank to avalise the drafts where the collecting bank will guarantee payment at maturity. RHB Bank is able to take on the roles of the remitting and collecting banks in this instance.
Benefits
- Allows more payment security compared to open account trading but do not require the security of Letter of Credit
- Minimizes the need for administrative work and is cheaper compared to trading on Letter of Credit terms
- Retains control of the goods until the buyer makes payment or accepts the usance drafts
- Allows access to financing options through our comprehensive range of export financing products
- Governed by the International Chamber of Commerce rule
